May 2012 Financial News

Budget Day weeks away? (Barbados)

May 21, 2012

Government could be presenting the 2012 Budget as soon as next month.

According to two well-placed sources, government is currently preparing the Financial Statement and Budgetary Proposal 2012 for some time in June, by holding consultations with private sector and other industry partners. Another source told The Barbados Advocate that private sector officials have been requesting incentives to get on with the business of investing in the economy.

The news will be welcomed by businesses and ordinary citizens alike as persons express hopes of feeling some relief from the constraints placed upon them over the past two years due to the lingering effects of the global downturn.

Of special interest would be the administration’s decision on the 2.5 percentage point increase in VAT. That increase resulted in close to $100 million in revenue as reported by the Central Bank of Barbados at the end of March, this year.

In his presentation of the 2010 budget, Minister of Finance Chris Sinckler had announced the increase of the tax from 15 per cent to 17.5 per cent with the promise that it would be reviewed by the end of this month, and businesses have already indicated their desire to have it removed.

Meanwhile at the end of last month, Governor of the Central Bank of Barbados, Dr. Delisle Worrell, outlined that the economy was expected to grow by just under one per cent again this year, following the 1.5 per cent expansion in the first three months of 2012. The governor had also said that the economy was stable.

While there have been several suggestions from various parties that with this prediction, citizens should not expect any major concessions, others are speculating that the opposite will hold true and that Government would come up with additional initiatives to stimulate private sector activity and drive much-needed growth within the economy.

Last year’s budget was presented in August. With the upcoming Budget being the last before the bell is rung for the next general elections, it may prove to be the DLP administration’s last opportunity to boost growth.


Source:
By Jenique Belgrave
Barbados Advocate
Monday May 21, 2012

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